Cree Raising Cash (CREE)
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Cree said that it intends to use the proceeds for an anticipated capital spending of approximately $150 million during its fiscal-2010 and for additional future capital expenditure needs. Of course there is the “for general corporate purposes” for the remainder of the capital.
J.P. Morgan is the only book-running manager and Bank of America Merrill Lynch is the lead manager. Co-managers are listed as Piper Jaffray, Morgan Keegan, Oppenheimer and America’s Growth Capital. Underwriters will have a 30-day option for the underwriters to purchase up to 1,650,000 additional shares if they choose.
As far as how this $400+ million compares to the overall size, the market cap before adjusting for this dilution is listed as $3.45 billion.
Cree shares closed up 2,5% at $38.40 today, however are trading down 4.1% at $36.81. The 52-week trading range was almost violated on the high-end today as that 52-week range is $12.57 to $38.97. After a quick review, this is not just near a 52-week high. This is actually within striking distance of a 5-year high.
JON C. OGG
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